Video: What are the Benefits of Close-out Netting?

Close-out netting occurs when two counterparties agree to combine their various obligations into a single net payment following a default.

ISDA’s new whiteboard animation video highlights how the enforceability of close-out netting drastically reduces credit exposure between two firms, and makes derivatives markets safer and more efficient.

If you can’t access the YouTube video above, please click here.

This video is also available on ISDA’s Facebook page.

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